The TIAA-CREF Advisor Network

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The TIAA-CREF Advisor Network

Expanding Employee Advice Services

Through Independent RIA’s

Robert Rickey, CFP

®

_{, AIF}

®

December 18, 2013

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FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

Full Spectrum of Advice Services

TIAA-CREF recognizes how important quality advice is to driving successful

outcomes. Our proprietary advice offerings can be complemented with access

to local, independent Registered Investment Advisors for answers to key

questions.

* May not be available to all participants.

Independent advisor

One-On-One

Telephone

Online

Personalized

Advice and

Counseling

Guidance and

Education

Financial

Planning for

More Complex

Needs*

“Am I on track to ensure my financial well-being for retirement?”

“How should I allocate and invest to reach my goals?”

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The TIAA-CREF Independent Advisor Model

Why?

• 403b regulations requiring all plans to have plan documents

• Greater recognition of fiduciary responsibility for plan sponsors

• Increased focus on fee transparency with 408b2 regulations

• Proposed financial regulatory changes promoting a single fiduciary standard of care

• Continued move toward independent RIA/fiduciary advice model for financial advisors

• Blending of traditional plan consulting services and participant level services

• Challenging economic times leading more Individuals to seek advice from

independent advisors

What?

• Network of pre-screened registered investment advisor firms and IAR

• Must meet minimum standards developed by the CFDD, Fiduciary Risk Assessment, and TIAA-CREF

• Provides a standardized Network profile.

• Provides communication, education, and participant level advisory services.

• Clients self-select independent qualified advisor

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Advisor Migration

Wirehouse

50,742

_Independent

Broker/Dealer

97,792

Insurance B/D

89,121

RIA

20,605

Losing Advisors

Gaining Advisors

Bank B/D

14,986

Regional B/D

34,359

Dually

Registered

12,773

Sources: Advisor Metrics 2011, Cerulli Associates

Advisors are shifting to more Independent

Distribution Channels

Traditionally viewed as a

transition to full

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Defining the Advisor Network

The TIAA-CREF Advisor Network is a network of prescreened registered

investment advisor firms and investment advisor representatives that have met

minimum standards developed by the CFDD, Fiduciary Risk Assessment, and

TIAA-CREF for providing communication and education services and

participant-level advisory services.

The Network is provided to assist Plan Sponsors and Participants in the selection

of an independent advisor by setting minimum standards and providing a

standardized Network profile.

Fiduciary Risk Assessment

Master Diagnostic

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Benefits of the TIAA-CREF Advisor Network

• Participant access to pre-screened list of local advisors

• Advisors must be affiliated with an SEC or State RIA

• Advisors vetted against minimum standards by independent third party

• Advisors are held to a fiduciary standard of care under the law

• Participants can review s

tandardized

Network Profiles for each advisors on the web

• Investment advisory fees are paid directly from retirement accumulations

• Fees are paid with pre-taxed dollars and do not generate tax reporting

• Network Advisors are required to limit fees to no more than 1.25%

• North Carolina 403(b) Program has capped advisor fees at 1.00%

Participants always own the choice to work with TIAA-CREF directly or with

an Independent Advisor within the Network.

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Strengths and Controls of Advisor Network

Network Strengths

• Industry leading due diligence

process

• Fiduciary standard of care for

advisors

• Network fee cap

• Strong legal agreements

• Code of business conduct

•Standardized Network Profiles

Network Controls

• Independent vetting process

• Annual recertification process

• Automated plan level fee cap

• Multiple layers of disclosure

• Backend reporting capabilities

• Internal Oversight Committee

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The TIAA-CREF Advisor Network (Network) is a service that provides plan sponsors and retirement plan participants with information to assist them in selecting independent investment advisers (Advisors) to provide communication, education and participant-level advisory services. Participating Advisors are not employees or agents of Teachers Insurance and Annuity Association (TIAA), College Retirement Equities Fund (CREF) or any of their respective affiliates or subsidiaries. TIAA-CREF acts as recordkeeper for institutional plans and is not a fiduciary to any plan or its respective participants. TIAA-CREF is not making a recommendation or acting as a fiduciary when plan sponsors or participants select an Advisor from the Network, nor is it responsible for the investment advice and other services provided by participating Advisors.

Participating Advisors are required to meet certain minimum criteria developed by the Center for Due Diligence/Fiduciary Risk Assessment and TIAA-CREF. However, participation in the Network should not be construed as an endorsement or guarantee by TIAA-CREF of the services provided by any Advisor. Plan sponsors and participants are free to select an Advisor outside of the Network to provide participant advice or other services. However, under the “Network Only” option Advisors outside the Network are not eligible to deduct fees from retirement plan

accumulations. Plan sponsors and participants should do their own due diligence before hiring an Advisor or any other financial professional. TIAA-CREF shall have no liability or responsibility for any losses arising out of or relating to a plan sponsor or participant’s decision to engage an Advisor. TIAA-CREF does not receive any compensation or referral fees from the Advisors participating in the Network.

TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details .TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. © 2013 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017